Kids Club Rozelle Pty Ltd v European Hire Cars Pty Ltd [2018] NSWSC 1115

Kids Club Rozelle Pty Ltd v European Hire Cars Pty Ltd [2018] NSWSC 1115

The defendant failed to establish that any representations by the plaintiff as to financial capacity or intentions constituted misleading or deceptive conduct under the Australian Consumer Law, nor that such conduct was a cause of entry into the Lease or Deed of Surrender of Lease; further, although some representations about DA costs and potential assignments were found to be misleading or deceptive, the defendant failed to prove causation or loss, and the statutory prerequisites for relief were not met.

Parties
Plaintiff/first Cross Defendant: Kids Club Rozelle Pty Ltd; Defendant/cross Claimant: European Hire Cars Pty Ltd; Second Cross Defendant: Corie Dax Stone
Jurisdiction
Australia
Judgment Date
19 July 2018
Procedural Posture
Principal Judgment / Final Judgment After Trial
Outcome
Defendant's cross-claims under Australian Consumer Law dismissed; Deed of Surrender of Lease remains on foot.
Legal Topics
Misleading or Deceptive Conduct, Leases, Surrender of Lease, Inducement, Remedies Under Australian Consumer Law
Consumer Law Equity Misleading or Deceptive Conduct Leases Surrender of Lease Inducement Remedies Under Australian Consumer Law

Case Brief

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Parties

Kids Club Rozelle Pty Ltd

Plaintiff/first Cross Defendant

European Hire Cars Pty Ltd

Defendant/cross Claimant

Corie Dax Stone

Second Cross Defendant

Procedural Posture

Principal Judgment / Final Judgment After Trial

Legal Issues

  1. 1 Whether representations by plaintiff as to financial capacity were misleading or deceptive within s 18 of the Australian Consumer Law
  2. 2 Whether representations as to expenditure and potential assignees prior to Deed of Surrender of Lease were misleading or deceptive
  3. 3 Whether misleading or deceptive conduct induced defendant to enter into Lease or Deed of Surrender of Lease

Ratio Decidendi

The defendant failed to establish that any representations by the plaintiff as to financial capacity or intentions constituted misleading or deceptive conduct under the Australian Consumer Law, nor that such conduct was a cause of entry into the Lease or Deed of Surrender of Lease; further, although some representations about DA costs and potential assignments were found to be misleading or deceptive, the defendant failed to prove causation or loss, and the statutory prerequisites for relief were not met.

Court Disposition

Defendant's cross-claims under Australian Consumer Law dismissed; Deed of Surrender of Lease remains on foot.

Orders

  • Defendant's Third Further Amended Statement of Cross-Claim dismissed.
  • Defendant liable to pay the balance of the Surrender Sum to the plaintiff under the Deed of Surrender of Lease.